The euro marks its 26th year amid economic challenges, with fluctuating value and new digital currency developments shaping its future across Europe and the global market.
The euro, now in its 26th year, faces challenging economic conditions in the eurozone.
Introduced in 1999 as a dematerialized currency for accounting and electronic payments, it became physical currency in 2002, used daily by 350 million people in 20 EU member states. The European Central Bank (ECB) oversees the monetary policy, aiming to control inflation below 2% by adjusting interest rates.
The euro, the world's second most significant currency after the US dollar, circulates in seven banknote denominations and various coins. The €500 note was discontinued in 2019 due to concerns over money laundering and terrorism.
While all EU countries, except Denmark, are required to adopt the euro if eligible, Croatia joined the eurozone in 2023, and Bulgaria is expected to follow.
The euro's value has fluctuated since its launch. After a drop to $0.83 in 2000, it reached $1.60 in 2008, but geopolitical tensions and global crises led to a 16% depreciation against the dollar in 2022.
Despite recovery in 2023, the euro faced pressure from various factors, including Donald Trump’s election win, and ended 2024 at $1.04, near the $1 parity last seen in the early 2000s.
Globally, the euro’s role has diminished, accounting for 19.76% of global reserves in 2024, down from 25% in 2003. Its share in global payments also declined to 22.9% by October 2024.
In response to changing financial landscapes, the ECB is developing a digital euro, expected to complement traditional currency and be available for public use. With a regulatory framework being established, a draft rulebook is anticipated in early 2025, offering a reliable and stable digital payment option across Europe.
European arms imports jumped 155% from 2020-24, with Ukraine emerging as the world’s largest arms importer, according to a Stockholm International Peace Research Institute (SIPRI) report released Monday. The surge follows Russia’s 2022 invasion, which has reshaped global defence markets.
The Armenian Cabinet has approved the creation of defense attaché positions for the European Union and Belgium.
European Council President António Costa announced at a press conference following the EU security summit that several member states have already committed to providing up to €15 billion in additional aid for Ukraine.
European leaders vow to boost defense and stand by Ukraine amid U.S. policy shifts. With fears of a growing Russian threat, the EU explores joint military funding and nuclear deterrence options.
The European Union has voiced serious concern over recent disruptions and violence in Serbia’s parliament, calling on all stakeholders to engage in an inclusive dialogue.
A mysterious collision between a U.S.-flagged chemical tanker carrying jet fuel for the U.S. military and a Portuguese-flagged container vessel unfolded off Britain’s coast on Tuesday morning, leaving both ships ablaze and prompting an urgent investigation into what went wrong
OpenAI on Tuesday introduced a suite of new developer tools designed to streamline the creation of advanced AI agents, signaling a strategic move amid intensifying competition from Chinese AI startups.
Mexico’s economy appears on track to contract in the first quarter, potentially plunging the country into a technical recession, as U.S. President Donald Trump’s fluctuating tariff policies disrupt growth that was already showing signs of weakness.
World leaders welcomed the 30-day ceasefire proposal that Ukraine has agreed to, calling it a step toward ending the conflict with Russia.
U.S. President Donald Trump reversed course on Tuesday, scaling back a planned 50% tariff on Canadian steel and aluminum just hours after announcing the sharp hike, following a retaliatory electricity surcharge threat from Ontario.
President Donald Trump is preparing a new travel ban that could block entry for people from Afghanistan and Pakistan as early as next week. The move is part of an intensified immigration crackdown.
Italy’s League party urges the government to favour Starlink over French-led Eutelsat for satellite communication systems, citing Starlink's technological edge. The push comes amid delays in the EU’s IRIS² program, as Italy seeks secure communication solutions for officials.
XPeng Motors plans to mass-produce flying cars by 2026, becoming the first company globally to do so. CEO He Xiaopeng also highlighted advancements in autonomous driving and humanoid robotics as part of the company’s future tech initiatives.
The Organization of Islamic Cooperation (OIC) is set to condemn Trump’s Gaza “Riviera” plan, backing Egypt’s $53 billion reconstruction proposal. A classified draft resolution, rejects the relocation of Gazans, calls for urgent international support, and mobilises opposition to the U.S. stance.
Poland's deputy prime minister vowed on Tuesday to stick with plans to introduce a new tax on big tech, hitting back at a threat of retaliation from the incoming United States ambassador amid a deepening war of words between Warsaw and Washington.
Concern over impending 25% tariffs on vehicles imported from Mexico and Canada has spurred U.S. car buyers to expedite their purchases, with many racing to dealer lots to lock in current prices before any increases take effect.
China's new energy vehicle (NEV) market saw impressive growth in February, with sales hitting 686,000 units. This increase highlights the country's strong push toward electrification, driven by government incentives, improved infrastructure, and growing consumer demand.
BioNTech forecasts a revenue decline for 2025, expecting between 1.7 billion and 2.2 billion euros, down from 2.75 billion euros last year. This drop is due to Pfizer write-downs and stable vaccination rates. BioNTech also plans significant job cuts and new hires.
EU lawmakers raised concerns about the digital euro project after a major failure in the ECB’s payment system, Target 2, which caused delays in transactions. Critics question the ECB's ability to manage the project, with some demanding improved systems before moving forward.
A mysterious collision between a U.S.-flagged chemical tanker carrying jet fuel for the U.S. military and a Portuguese-flagged container vessel unfolded off Britain’s coast on Tuesday morning, leaving both ships ablaze and prompting an urgent investigation into what went wrong
OpenAI on Tuesday introduced a suite of new developer tools designed to streamline the creation of advanced AI agents, signaling a strategic move amid intensifying competition from Chinese AI startups.
Mexico’s economy appears on track to contract in the first quarter, potentially plunging the country into a technical recession, as U.S. President Donald Trump’s fluctuating tariff policies disrupt growth that was already showing signs of weakness.
World leaders welcomed the 30-day ceasefire proposal that Ukraine has agreed to, calling it a step toward ending the conflict with Russia.
U.S. President Donald Trump reversed course on Tuesday, scaling back a planned 50% tariff on Canadian steel and aluminum just hours after announcing the sharp hike, following a retaliatory electricity surcharge threat from Ontario.
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